China Petrochemical Corporation (Sinopec) will set up a joint venture with Saudi Aramco to build a world-class, full-conversion refinery in Yanbu', on the west coast of Saudi Arabia.

The two sides have signed a Memorandum of Understanding (MOU) on March 16. Under the MOU, Sinopec will hold 37.5 percent of the joint project while Saudi Aramco will the reminder.

The refinery will be able to process 400,000 barrels of crude oil per day and is expected to start operations in 2014,

Saudi Aramco is Sinopec's partner (with ExxonMobil) in the Fujian Refining and Petrochemical Company Limited in Fujian Province, as well as in Sino Saudi Gas Ltd., one of the Saudi Arabian gas exploration companies.